Mumbai, Jul 25 (IANS): Global credit agencies said the government’s plan for fiscal consolidation would positively impact India's credit profile.

In the Union Budget 2024-24, the government set the fiscal deficit target at 4.9 per cent of the GDP for FY25, lower than the 5.1 per cent announced in the Interim Budget.

Global credit agencies like Moody's, Fitch Ratings, and S&P Global Ratings have given thumbs up to the Union Budget.

Moody's Ratings said, "Policy continuity is reflected in the budget. The government's capital spending on infrastructure is around 23 per cent of total expenditure."

The rating agency further said, "Overall, the Budget is credit positive. The government has set the fiscal deficit target for the current financial year at 4.9 per cent of the GDP, which is lower than the 5.1 per cent set in the Interim Budget. At this pace, it can achieve its target of reducing the fiscal deficit to 4.5 per cent of the GDP by the financial year 2025-26."

S&P Global Ratings said, "The budget reflected the government's commitment to continue fiscal consolidation. Rs 11.11 lakh crore has been allocated for capital investment in infrastructure, which shows that the government's focus is on investing in infrastructure."

The rating agency added, "Reducing taxes on foreign companies will help in job creation and investment in India."

Rating agency Fitch said, "The budget reflects the government's commitment to reduce the fiscal deficit. Fiscal consolidation will bring down India's debt ratio in the medium term and support its credit profile."